When we see an old car puttering down the street, we often assume the person driving it can’t afford to do better. But maybe those beater-driving beatniks have the right idea and it’s the guy in the brand-new BMW we should really be feeling sorry for? Recent statistics from CGA-Canada suggest that Canadians are financing 95 cents of every dollar they spend on a new car and using ultra-long lending terms to make it work. In other words, that guy in the BMW likely owns little more than a shiny hubcap.
But if you can make the payments, everything’s good, right? It depends on how much that new car smell is worth to you. Although cheap credit and the end of an auto-sales slowdown are making new cars more attractive than ever, what many consumers fail to realize is that being able to afford a car payment is not the same as being able to afford the car. Find out why in my new post on GoldenGirlFinance.com.